No overheating in bank loans: BOT
Despite the steep growth rate in bank loans, Bank of Thailand insists that there is no sign of overheating, thanks to low non-performing loan level and full compliance to lending rules.
"The lending rules are not relaxed and there is no damage. Still, the central bank has closely monitored the development," said Salinee Wangtal, an assistant governor of the central bank.
The central bank and commercial banks attributed the 15-16 per cent growth in bank loans in the first four months of this year to high demand after last year's flood. Siam Commercial Bank, which saw the highest increase in bank loans, also plans to revise up its annualised loan growth target from 14 per cent.
Last year's flood is estimated to cost the country over Bt1 trillion.
Aside from bank loans, affected SMEs and individuals are also looking for low-rate loans. The Bank of Thailand is also coming up with a soft loan scheme worth Bt300 billion.
According to Salinee, in the past three months, about Bt30 billion has been extended under the scheme. Meanwhile, the central bank is allocating the remaining resources, based on applications filed on June 22 and the participating institutions' actual lending activities.
